energy prices to go down, but... standing charges remain

javixeneize

Energy companies say they will be reducing their unit price, but the standing charges, which where increased when unit prices went up, are not coming down at the same pace

Is that fair?

CSI_Yorkshire

Yes.

Happening exactly as it should based on the open, transparent and well-discussed calculations.

You're making a link that doesn't exist.

Scot_39

It's nothing to do with your energy reseller.

The rates are set by Ofgem.

Read the article sticky'd at top of this forum.

Grid costs are increasing - someone has to pay.

dunstonh

Is that fair?

yes, it is.  Difficult to understand why you wouldn't think it fair.   However, you linking the falling costs of energy to the standing charge suggest its more to do with a lack of understanding.

Astria

javixeneize said:

Energy companies say they will be reducing their unit price, but the standing charges, which where increased when unit prices went up, are not coming down at the same pace

Is that fair?

The energy grid needs expanding and upgrading to support all the electric vehicle charging point the government wants in place by 2030, who do you think is going to pay for that? I'm surprised they've not increased more.

peter3hg

The biggest element of the standing charge increase has nothing to do with increasing grid costs and similar that people usually cite.
Instead the majority of the increase is because OFGEM have moved transmission and distribution network costs in to the standing charge that previously were part of the unit cost.
This move has added about 19.5p to the electricity standing charge but should have reduced the unit charge by about 2.3p.

javixeneize

Astria said:

javixeneize said:

Energy companies say they will be reducing their unit price, but the standing charges, which where increased when unit prices went up, are not coming down at the same pace

Is that fair?

The energy grid needs expanding and upgrading to support all the electric vehicle charging point the government wants in place by 2030, who do you think is going to pay for that? I'm surprised they've not increased more.

what about taxes?

i dont know, year after year the energy providers are having record profits, and they keep saying they need more money

CSI_Yorkshire

javixeneize said:

Astria said:

javixeneize said:

Energy companies say they will be reducing their unit price, but the standing charges, which where increased when unit prices went up, are not coming down at the same pace

Is that fair?

The energy grid needs expanding and upgrading to support all the electric vehicle charging point the government wants in place by 2030, who do you think is going to pay for that? I'm surprised they've not increased more.

what about taxes?

i dont know, year after year the energy providers are having record profits, and they keep saying they need more money

Did you miss the year when many of them went bust?

Or have you got confused between producers, generators and suppliers like many others seem to?

MattMattMattUK

javixeneize said:

Astria said:

javixeneize said:

Energy companies say they will be reducing their unit price, but the standing charges, which where increased when unit prices went up, are not coming down at the same pace

Is that fair?

The energy grid needs expanding and upgrading to support all the electric vehicle charging point the government wants in place by 2030, who do you think is going to pay for that? I'm surprised they've not increased more.

what about taxes?

What about them? Or do you mean you want taxes that other people pay to rise, but not have to pay the standing charge yourself? 

javixeneize said:

i dont know, year after year the energy providers are having record profits, and they keep saying they need more money

The energy suppliers, the people who you pay for your energy have their profits capped at 1.8%. They spent most of last year losing tens to hundreds of millions. If you mean the energy extraction and production companies who make profits on their international operations they they have had a profitable eighteen months, but again, no one was offering them any sympathy when they were losing tens of billions in 2020.

Krakkkers

If those companies profits are capped at 1.8% then why are they in business, i just opened a fixed rate account at 6.1%.

CSI_Yorkshire

Krakkkers said:

If those companies profits are capped at 1.8% then why are they in business, i just opened a fixed rate account at 6.1%.

And what's the maximum deposit size on that account?